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FTC and 22 states sue Amazon over alleged ad auction manipulation

The Federal Trade Commission and 22 states filed a civil lawsuit against Amazon on August 31, 2026, accusing it of secretly raising advertising prices.

2 reports on this incident · first at Aug 31, 2026, 3:08 p.m. ET

By AI ReporterFirst reported Aug 31, 2026, 4:20 p.m. ETUpdated Sep 2, 2026, 7:22 p.m. ET
The Federal Trade Commission and 22 states filed a lawsuit against Amazon on August 31, 2026, according to a from the FTC. The suit alleges that Amazon manipulated its advertising auctions to make advertisers pay more, with reports describing the alleged scheme differently. TechCrunch reported that Amazon spent more than seven years quietly increasing prices, affecting more than one million brands and sellers and generating tens of billions of dollars in additional revenue. Kristv.com reported that Amazon likely illegally extracted over $20 billion from 1.2 million customers. The Verge reported that Amazon has been manipulating auctions since 2019, replacing the auction price with a higher price designed to maximize profits. TechRadar reported that Amazon used a so-called 'invented auction participant' to push prices higher. ABC7 Chicago reported that Amazon overcharged 1.2 million advertising customers by misleading them on prices for online ad auctions. JD Journal reported that Amazon added an undisclosed charge in 2019, called a 'soft reserve price', while continuing to describe its ad system as a second-price auction. The allegations are only accusations at this stage; the case is undecided and has not been resolved by a court. The FTC is seeking monetary relief of more than $20 billion in alleged harm, according to JD Journal. The case is a action filed in district court.

Earlier reports

  1. Aug 31, 2026, 3:08 p.m. ETFirst report

    FTC and States Sue Amazon Over Alleged Secret Ad Surcharge Scheme

    The Federal Trade Commission (FTC) and a group of states filed an enforcement action against Amazon on August 31, 2026, according to an FTC press release. The action alleges that Amazon engaged in a "secret ad surcharge scheme," as described in the FTC's announcement.

    The FTC's press release, titled "FTC, States Sue Amazon Over Secret Ad Surcharge Scheme," details the allegations but does not specify the exact nature of the surcharge or the states involved. The enforcement action is part of the FTC's ongoing oversight of business practices.

    As of the publication date, the case is in its initial stages, and no court ruling has been made. The allegations are unproven, and Amazon has not yet responded publicly.

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Sources

Revision history

  1. Version 52 Sept 2026, 23:22current

    Updated to reflect the FTC's litigation release and the range of reported allegations.

  2. Version 42 Sept 2026, 20:53

    Expanded to include sourced descriptions of the alleged scheme from multiple outlets.

  3. Version 331 Aug 2026, 21:52

    Updated to reflect the FTC's litigation release and the charging stage, with no change in allegations.

  4. Version 31 Sept 2026, 21:23

    Clarified that the case is undecided and allegations are only accusations at the charging stage.

  5. Version 231 Aug 2026, 21:41

    Updated to reflect that the case is at the charging stage and allegations remain undecided; added sourced range for conflicting figures.

  6. Version 131 Aug 2026, 20:53

    First published.

  7. Version 11 Sept 2026, 07:10

    First published.

  8. Version 131 Aug 2026, 19:08current

    First published.

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